Purchasing your own business premises

Some businesses choose to buy rather than rent their business premises. To do this, they take out a commercial property loan. As with all loans there are many options and things to consider, here are a few:

Repayments and their effect on cash flow

Many small businesses prefer to rent rather than buy for cash flow reasons. However, there are a number of factors that can make buying your business premises an attractive option.

Buying business premises through a self managed super fund

Many businesses these days have their own self managed super funds. Rather than invest in a share or property trust, some of these businesses choose to invest their super funds in their own commercial property.

Interest is tax deductible

If the property is financed by a commercial property loan is used entirely for business purposes, the interest charges on the loan are wholly tax deductible – as are any maintenance charges. If the property is partially used for personal purposes, only a commensurate proportion of your interest and maintenance charges is tax deductible.

Capital gains

Over recent years, property prices have appreciated markedly. You might make a capital gain on your commercial property.

We are here to offer guidance to help you achieve your financial and life goals. Reach out to us by calling 08 8211 7180 or at info@centramoney.com.au.

Centra Money - Loan Brokers and Finance Advisers
Scroll to Top